Second place is the first loser... online gaming takes control of the living room
Announcement posted by IDC 26 Feb 2004
IDC has recently completed its inaugural study on the digital home titled: From the Den to the Living Room: Computing and Consumer Electronics Coming Together and Shaping the Australian Digital Home. Online Gaming is one of the hot topic covered in this study. Last October 2003, Microsoft launched Xbox live, and Sony launched its Network Gaming online offering. In this study IDC compares the two offerings and explores why they will be key to the progression of the digital home and also impact adjacent markets.
"Online gaming consoles are opening the gates to endless future possibilities in the home, they are evolving into much more sophisticated devices that do much more than play games" says Brad Hill, IDC Market Analyst. They are also allowing consumers to store music, view pictures, access the internet,
watch movies and play games at a much lower cost than a DVD player or PC. "The existing and future features will make gaming consoles the entertainment hub of the living room" added Mr Hill.
In this report IDC compares the two business models offered by Microsoft and Sony across facets such as communication, identification and pricing structure.
Despite Sony's undisputable gaming console market leadership, IDC found that Xbox live is more likely to lead the online gaming console market because they have embraced simplicity in registration and identification. While Network Gamings registration was not complex, it did lack the simplicity of Xboxs.
Additionally, voice communication over the broadband connection is significantly differentiating Xboxs position from its competitors. In regards to pricing, as Microsoft has a subscription based cost for a premium service, it is unlikely to be a hindrance.
Looking forward, IDC explores the next generation consoles on the drawing board today, new competitors planning to enter this market space and the important influence of game publishers.
"Online gaming consoles are opening the gates to endless future possibilities in the home, they are evolving into much more sophisticated devices that do much more than play games" says Brad Hill, IDC Market Analyst. They are also allowing consumers to store music, view pictures, access the internet,
watch movies and play games at a much lower cost than a DVD player or PC. "The existing and future features will make gaming consoles the entertainment hub of the living room" added Mr Hill.
In this report IDC compares the two business models offered by Microsoft and Sony across facets such as communication, identification and pricing structure.
Despite Sony's undisputable gaming console market leadership, IDC found that Xbox live is more likely to lead the online gaming console market because they have embraced simplicity in registration and identification. While Network Gamings registration was not complex, it did lack the simplicity of Xboxs.
Additionally, voice communication over the broadband connection is significantly differentiating Xboxs position from its competitors. In regards to pricing, as Microsoft has a subscription based cost for a premium service, it is unlikely to be a hindrance.
Looking forward, IDC explores the next generation consoles on the drawing board today, new competitors planning to enter this market space and the important influence of game publishers.